Brazil Considers B2B Supplier Certification

Imagine a booming iGaming market pushing the boundaries, yet lacking a crucial B2B licensing structure.

Brazil’s regulator now hints that supplier certification could join its next wave of reforms, targeting illegal gambling.

Picture robust supplier checks, 9,000 illegal sites already closed, and an international coalition preventing black-market infiltration.

Keep reading to see how Brazil’s approach might reshape Latin America’s biggest regulated opportunity.

Brazil Mulls B2B Certification: Stepping Up Supplier Oversight and Cracking Down on Illegal Operators

3 Key Points

1. Brazil may introduce B2B certification for supplier platforms, systems, and vital tech.
2. 9,000 illegal gambling domains have already been shut down.
3. Global cooperation and advertising regulations remain big agenda items for the nascent market.

Brazil is eyeing new controls over B2B gaming suppliers, reinforcing its fledgling regulated gambling market. Regis Dudena, head of the Secretariat of Prizes and Bets (SPA), said supplier certification might soon help maintain consistency and compliance. While no formal ruling exists, interest in bridging regulatory gaps spiked after a recent fiasco with unlicensed live casino studios.

Why B2B Certification Matters

Dudena admitted that current focus has revolved around operators first. Now, though, the SPA sees how crucial it is to verify B2B providers—hardware makers, software platforms, and other crucial service layers. He notes that a “clear need” emerged as soon as they discovered the hurdles around importing unapproved gaming machines. The lack of certifications had previously thwarted standard license checks.

By establishing B2B certification, Brazil extends accountability beyond just operators to their supplier networks. Such changes can help regulators ensure entire product lines comply with local requirements. Dudena envisions initial coverage for major platforms, back-end systems, and key vendors, but the final scope remains to be hammered out.

Stopping Unlicensed Traffic

In tandem with B2B plans, authorities continue fighting illegal online gambling. Over 9,000 unlicensed domains vanished already, although Dudena insists more sites likely lurk. Officials plan to intensify collaboration with major social networks, working on fast-track ways to remove questionable advertising and ban suspicious accounts.

Simultaneously, new payment restrictions aim to block money flows to unauthorized websites. The SPA also fosters international relationships, sharing data with foreign regulators like the UK’s Gambling Commission. By building such alliances, Brazil hopes to dismantle cross-border networks exploiting the region’s robust appetite for wagering.

Uncertain Market Size, but Big Potential

Dudena concedes that exact numbers remain elusive, especially for the unregulated market. However, the government expects strong results from the newly launched system. Soon, a comprehensive study will shed light on the sector’s potential. Observers suggest the scale dwarfs earlier estimates, making Brazil an emerging behemoth in the global iGaming scene.

Advertising in Brazil stokes tension too. Some politicians advocate total bans, while regulators believe moderate advertising fosters brand awareness of legal operators. Dudena recommends letting the market stabilize first, then calibrating ad restrictions as needed. He also suggests implementing a central self-exclusion register, inspired by Australia’s model.

Looking Ahead

Brazil’s approach remains a work in progress. Dudena hints that eventually, an independent regulatory agency might emerge, detached from the Ministry of Finance. That could streamline decision-making, leaning on technical and economic expertise. On licensing, the second wave is ongoing. The SPA has 150 days to review submissions, after which approved operators have 30 days to finalize their status.

Brazil also welcomes constructive feedback from operators, consumers, and experts. Dudena fosters a mindset of listening, acknowledging that synergy with stakeholders can prevent repeated mistakes. He emphasizes that regulators need broad perspectives to shape user protections.

As Brazil broadens its gambling market, B2B certification stands poised to tighten oversight of iGaming suppliers. At the same time, shutting down thousands of illegal sites illustrates how the government is eager to ensure regulated play. With robust moves against illicit platforms, deepening global alliances, and possible new regulations for ads, Brazil aims to become a modern gambling powerhouse. While the final policies await refinement, the direction is clear: a more accountable, transparent system for both operators and suppliers.